Ethereum (ETH) is currently navigating a critical juncture, with veteran trader Peter Brandt highlighting $2,830 as a pivotal threshold. According to Brandt, if ETH breaches this level, it would invalidate the short-side trade, signaling a potential shift in market dynamics.
Despite Federal Reserve Chair Jerome Powell’s dovish comments, which typically could bolster risk assets, Ethereum remains under significant pressure. The crypto community is closely watching as Ethereum’s price struggles beneath the $2,814 resistance level—a point that has repeatedly tested the market’s resolve.
Peter Brandt’s Short-Selling Insights
Brandt’s analysis suggests that Ethereum’s failure to hold below $2,830 could undermine the current bearish outlook. With ETH currently hovering around the $2,550 mark, Brandt points to the $1,980 support level as a possible target if selling pressure persists. This bearish sentiment is rooted in a simple market imbalance: sellers are outpacing buyers in their urgency to offload ETH.
On-Chain Data Reinforces Bearish Stance
On-chain data from IntoTheBlock supports Brandt’s cautious outlook. The analytics firm’s netflow metrics show sustained selling pressure from large ETH holders. Over the past month, netflow has plummeted by 76.53%, indicating a significant offloading trend. High-profile transactions include the Ethereum Foundation’s sale of 35,400 ETH, worth about $95 million, and Jump Trading’s disposal of 88,900 ETH, valued at approximately $276 million. These large sales have added to the downward momentum.
Also Read: Ethereum ETFs Rebound – Daily Inflows Hit $5.84M As Bitcoin ETFs Bleed
Cautious Optimism from Analysts
However, not all analysts share a uniformly bleak perspective. Michaël van de Poppe, founder of MN Consultancy, notes a potential for recovery if ETH manages to surpass the $2,550 level. He posits that a successful breakout could propel ETH towards $3,000, but advises traders to proceed with caution and await confirmation before making new trades.
At the time of writing, Ethereum has seen a modest 2.8% uptick over the past 24 hours, trading at $2,551. As ETH treads this critical line, traders and investors alike are bracing for potential shifts in momentum that could significantly impact the cryptocurrency’s future trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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